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Routt County board hears updates on state budget shortfall, 9‑1‑1 financing, lodging tax proposal and regional transit pledge

August 11, 2025 | Routt County, Colorado


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Routt County board hears updates on state budget shortfall, 9‑1‑1 financing, lodging tax proposal and regional transit pledge
Routt County commissioners met in Steamboat Springs on Monday to discuss the implications of Colorado’s announced special legislative session and related state budget shortfall, plans to change how 9‑1‑1 dispatch is funded, a proposed county lodging tax for public safety and infrastructure, the schedule and outstanding questions on a regional transportation authority (RTA) formation measure, and several ongoing housing and capital projects.

Commissioners opened the session with committee updates, including reports on a statewide CCAT meeting where participants described a projected Colorado budget gap of roughly $800 million to $1 billion and early proposals for how to cover it. County leaders flagged concern that the state may shift costs to counties as it implements closures of corporate tax loopholes, draws on reserves and reduces program funding, and they noted potential fiscal effects on Medicaid and SNAP that could increase local administrative workloads.

The board spent substantial time on dispatch funding. County staff and city representatives discussed a transition from the current subsidy model to a user‑pay, call‑volume approach and raised the possibility of increasing the 9‑1‑1 surcharge applied to phone lines. County staff said they plan to file with the Public Utilities Commission to request an increase in the line‑fee; city participants and smaller fire districts urged a phased implementation and creation of a governance or oversight committee to ensure representation from municipalities and small districts and to consider how indirect overhead costs are allocated. Commissioners and city council members expressed broad support for finding a sustainable funding path, but asked staff to return with detailed phasing and governance proposals before any levy or fee changes take effect.

On lodging tax proposals, commissioners and staff reviewed a draft resolution to place a county lodging tax question on the ballot that would dedicate revenue to public safety and infrastructure, with a 10% marketing/destination stewardship carve‑out. County staff said they had mailed notices to lodging operators and municipal partners; Yampa and Oak Creek were identified as municipalities the county must engage because their local lodging businesses could be affected. Staff and commissioners asked the county finance team to run revenue scenarios (inc. municipal properties) for use at the next work session and flagged statutory deadlines in late August/early September for final ballot language and the clerk’s intragovernmental agreement if the county proceeds.

Bill Ray, the RTA formation consultant, briefed elected officials on the clock for approving an intergovernmental agreement to let voters decide whether to form the RTA. Ray said the formation question can be placed on the ballot without a funding plan, but commissioners said they were not comfortable advancing the ballot question to voters without a signed pledge agreement from the Steamboat Ski & Resort Corporation. County and municipal officials said they had expected a signed pledge and described a request from the ski company for additional clarifications before signing; commissioners asked formation staff to report back on the specific items the ski company requested.

On housing, the Yampa Valley Housing Authority presented an update on the Cottonwoods project, a planned 86 deed‑restricted, owner‑occupied homes scheduled for delivery in January 2026. Staff said prescreening has attracted more than 230 inquiries; units will target local workforce households with income limits set by AMI bands and require employment or other residency criteria. Commissioners and county planning staff also updated each other on separate housing guideline work that will set eligibility, resale restrictions and administration details for workforce housing tied to development approvals.

Commissioners reviewed department budget previews from planning, legal, building, elections, motor vehicle, Colorado State University extension, emergency management and others. The common themes were constrained revenues, higher operating costs (notably county overhead and motor pool), and selective capital items carried forward from 2025 (for example, dispatch and radio replacement projects). Several departments noted they expect to close 2025 under budget because of staff vacancies, while warning the county’s near‑term fiscal picture could tighten if state action reduces program funding or imposes new cost shares.

The board asked staff to return with a narrower lodging‑tax ballot draft, an updated revenue forecast that includes properties in Yampa and Oak Creek, and a proposed dispatch funding phase and governance structure. Commissioners noted they want to avoid surprise fiscal shifts for small fire districts and municipal partners and stated the need to protect services for vulnerable residents if the state reduces program funding.

Ending: The board recessed to follow up on the lodging tax and dispatch items at future work sessions and scheduled a public hearing date for the lodging tax question, while county staff said they will continue outreach to municipal partners and pursue grant or other local match strategies to advance targeted mitigation and public safety projects.

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